CIL SECURITIES 2022-23 Annual Report Analysis

Thu, 1 Jun

CIL SECURITIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CIL SECURITIES Income Statement Analysis

• Operating income during the year rose 17.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 10.8% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 35.2% in FY23 as against 37.3% in FY22.
• Depreciation charges decreased by 5.1% and finance costs increased by 56.3% YoY, respectively.
• Other income grew by 141.2% YoY.
• Net profit for the year grew by 14.6% YoY.
• Net profit margins during the year declined from 27.3% in FY22 to 26.7% in FY23.

CIL SECURITIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	83	97	17.4%
Other income	Rs m	0	0	141.2%
Total Revenues	Rs m	83	98	17.6%
Gross profit	Rs m	31	34	10.8%
Depreciation	Rs m	1	1	-5.1%
Interest	Rs m	1	2	56.3%
Profit before tax	Rs m	29	32	10.0%
Tax	Rs m	6	6	-6.1%
Profit after tax	Rs m	23	26	14.6%
Gross profit margin	%	37.3	35.2
Effective tax rate	%	21.9	18.7
Net profit margin	%	27.3	26.7

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CIL SECURITIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 127 million as compared to Rs 266 million in FY22, thereby witnessing an decrease of -52.4%.
• Current assets fell 24% and stood at Rs 337 million, while fixed assets fell 9% and stood at Rs 58 million in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 395 million as against Rs 507 million during FY22, thereby witnessing a fall of 22%.

CIL SECURITIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	238	264	10.9
Current Liabilities	Rs m	266	127	-52.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	507	395	-22.3
Current assets	Rs m	444	337	-24.1
Fixed Assets	Rs m	64	58	-9.0
Total Assets	Rs m	507	395	-22.3

CIL SECURITIES Cash Flow Statement Analysis

• CIL SECURITIES's cash flow from operating activities (CFO) during FY23 stood at Rs -165 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 14 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs 0 million on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs -152 million from the Rs 70 million net cash flows seen during FY22.

CIL SECURITIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	79	-165	-
Cash Flow from Investing Activities	Rs m	-8	14	-
Cash Flow from Financing Activities	Rs m	0	0	-
Net Cash Flow	Rs m	70	-152	-

Current Valuations for CIL SECURITIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 5.2, an improvement from the EPS of Rs 4.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 27.2, stands at 5.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 0.5 times, while the price to sales ratio stands at 1.4 times.
• The company's price to cash flow (P/CF) ratio stood at 5.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	16.6	19.4
TTM Earnings per share	Rs	4.5	5.2
Diluted earnings per share	Rs	4.5	5.2
Price to Cash Flow	x	5.0	5.4
TTM P/E ratio	x	5.2	5.2
Price / Book Value ratio	x	0.5	0.5
Market Cap	Rs m	119	145
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for CIL SECURITIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.7x during FY23, from 1.7x during FY22. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 17.2x during FY23, from 24.0x during FY22. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 9.8% during FY23, from 9.5% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 12.8% during FY23, from 12.7% during FY22. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 7.1% during FY23, from 4.7% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	1.7	2.7
Debtors’ Days	Days	1,193	986
Interest coverage	x	24.0	17.2
Debt to equity ratio	x	0.0	0.0
Return on assets	%	4.7	7.1
Return on equity	%	9.5	9.8
Return on capital employed	%	12.7	12.8

To see how CIL SECURITIES has performed over the last 5 years, please visit here.

CIL SECURITIES Share Price Performance

Over the last one year, CIL SECURITIES share price has moved down from Rs 27.9 to Rs 27.2, registering a loss of Rs 0.7 or around 2.5%.

Overall, the S&P BSE SENSEX is up 12.1% over the year.

(To know more, check out historical annual results for CIL SECURITIES and quarterly results for CIL SECURITIES)